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OfficeStaff WriterSun 05 Nov 17

Speculative Industrial Development Gathers Pace in Western Sydney

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Western Sydney's warehouse and logistics sector has surged in speculative industrial developments and Stockland leads the charge in providing supply to a growing demand.

Over the past 12 months, the development company has speculatively developed over 29,000 square metres of industrial space across western Sydney and intends to construct a further 77,187 square metres of space over the next year.

Activity over the next 12 months includes the second stage of the 28-hectare Ingleburn Logistics Park, incorporating two new warehouse facilities of 15,500 square metres and 21,350 square metres at 37-39 Stennett Road, Ingleburn.

Commencement follows the success of Stage One -- a 29,000 square metre facility that was leased to 3PL providers TIFS and Next Logistics -- negotiated by CBRE’s Tom Rourke.

[Related reading: Stockland’s Annual Profit Increases 34% to $1.2 Billion]The Ingleburn facility was designed with the transport and logistics sector in mind-featuring minimum 10m internal clearance, large awnings, B-double drive around access and high-quality office and staff amenities.

Rourke said the warehouse had been designed so it could be split into two tenancies, to cater for a broader range of potential tenants.

“Next Logistics and TIFS were attracted to the building’s corporate presentation and competitive pricing relative to much of the competition,” Rourke said.

“Both leases were struck at an average net rental of $105 per square metre per annum, with outgoings which are almost a quarter of what is currently being paid in suburbs such as Botany, Mascot and Alexandria.”

Stockland has also secured a major blue-chip occupier -- air conditioning specialists Daikin -- for the majority of its 11.5-hectare business park in Warwick Farm in a lease totalling 33,278 square metres.

A tenant is being sought for the remaining 17,737 square metres of available space, which is also being speculatively developed, with a scheduled completion date of late 2017.

This Warwick Farm site is directly opposite the new Inglis thoroughbred horse, sale yards, conference centre and a new Sofitel hotel.

Stockland is also targeting further development of its Yennora Distribution Centre – Sydney’s largest distribution centre with over 300,000 square metres of warehouse space. The centre is now 100 per cent occupied for the first time in over 10 years.

IndustrialAustraliaConstructionPlanningReal EstatePlanningSector
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Article originally posted at: https://www.theurbandeveloper.com/articles/western-sydney-speculative-industrial-developments